Trump inherits a daunting economic landscape with a $2 trillion deficit in 2024, the highest in peacetime history, and a federal debt approaching $40 trillion, with no clear plan to address these issues.
The steepening yield curve and rising long-term interest rates signal investor expectations of inflation and stagnation, reflecting a lack of confidence in the Federal Reserve’s ability to control inflation.
Trump’s trade policies and tariffs are unlikely to fix the economy, potentially leading to negative outcomes such as tanking the economy and exacerbating existing problems.
The monetary inflation and $6 trillion printing during COVID will likely result in $30 trillion deficits, increased debt, and inflation, eroding the dollar’s dominance and intensifying domestic inflation.
Trump’s policies may not effectively address housing affordability for the middle class and those under 40 who don’t own homes, a key issue in the 2020 election and a source of economic dissatisfaction.
Trump’s 2024 re-election and the 2022 midterms face challenges due to potential short-term economic pain from his policies, including unemployment and private sector job losses.
